REPORT TO COUNCIL
SUBJECT
Title
Action authorizing the City Manager to Negotiate and Execute an Amendment to the City's Loan Agreement with Monroe Street Housing Partners, L.P by an Increased Amount Not to Exceed $3.0 Million to Upgrade Approximately 1,860 Lineal Feet of Water Main to Support the Construction of a Residential Affordable Housing Project at 2330 Monroe Street and Related Budget Amendment
Report
COUNCIL PILLAR
Promote and Enhance Economic and Housing Development
BACKGROUND
The City issued a Request for Proposals (RFP) in 2018 for the development of an affordable housing project on the City-owned property located at the southeast corner of Monroe Street and San Tomas Expressway (2330 Monroe Street). Monroe Street Housing Partners L.P (Freebird) was selected as the Developer for the site through an RFP process and the Council approved an Exclusive Negotiation Agreement (ENA) with Freebird in December 2018 to allow the project to proceed. On January 28, 2020, Council approved land use entitlements and a Disposition and Development Agreement for the project. On September 2, 2020, the City amended its Development Agreement with Freebird to increase the City loan by $1,500,000.
Under the Development Agreement, the developer will construct a 65-unit affordable housing project located at 2330 Monroe Street. The project includes 16 units at 25% Area Median Income (AMI) for Santa Clara's growing population of adults with developmental and/or intellectual disabilities, 48 units ranging from 50-80% AMI, and 1 manager's unit.
In February 2020, the City began using a hydraulic modeling service provided by HydroScience to evaluate the impacts of new development on the City's water distribution system. The hydraulic modeling evaluates the system water pressures and provides a report for any needed improvements to meet the development's water and fire demand needs while maintaining the system's minimum operating pressures.
On March 16, 2022, during the per...
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